Chrysler 2010 Annual Report Download - page 69

REPORT ON
OPERATIONS
FINANCIAL
REVIEW –
FIAT GROUP
68
Other Businesses
Other Businesses includes the contribution from the Group’s publishing businesses, service companies and holding companies. For 2010, Other
Businesses had revenues of €1,159 million, up 10.7% year-over-year.
Discontinued Operations
Agricultural and Construction Equipment
CNH – Case New Holland had revenues of €11,906 million for 2010, an increase of 17.8% over 2009 (+12% in US dollar terms) on the back of improving
agricultural and construction equipment demand in the Americas and Rest of World markets. Net sales in the Agricultural equipment segment increased
14% for the year (+8% in USD) as a result of solid trading conditions in the Americas due to increasing agricultural commodity prices and good harvest
conditions. Trading conditions in Europe were more difficult, largely due to poor harvest conditions in certain countries and tight credit markets. Full year
2010 net sales in the Construction equipment segment grew 46% (+39% in USD) as a result of significant market improvements in Latin America and Asia,
and improved conditions in North America largely due to replacement of ageing fleets.
In 2010, worldwide agricultural industry retail unit sales increased 8% compared to prior year with improvements in all regions except Western Europe.
Global sales grew 8% for tractors and 2% for combines. CNH full year global market share for tractors was largely in line with prior year, maintaining position
in Western Europe despite the industry decline and with a slight decrease in North America in under 40 hp and mid-sized utility tractors while transitioning
to new and more competitive products. CNH improved its global market share for combines on strong performance in the Rest of World regions.
Global construction equipment industry unit sales rose 47% in the year, off a low basis in 2009, with light equipment up 35% and heavy equipment up 59%.
CNH’s full year market share was in line with growth in demand across all segments and regions with the exception of Latin America, which was down due
to local manufacturing capacity constraints for CNH in both the heavy and light segments. Capacity expansion plans have been initiated at two facilities to
accommodate future market growth and in order to meet manufacturing localization targets.
Trucks and Commercial Vehicles
Iveco reported revenues of €8,307 million for the year, up 15.6% over 2009, primarily as a result of higher sales volumes, which reflect a general recovery
in demand, although remaining at modest levels in Western Europe.
Iveco delivered a total of 129,630 vehicles, an increase of 24.8% over 2009. Growth was recorded in all segments with light vehicles up 25.3%, medium up
51.3% and heavy up 27.6%. Total deliveries for 2010 were, however, still considerably below pre-crisis levels. In Western Europe, a total of 78,326 vehicles
were delivered (+17.3%), with increases in France (+22.3%), Germany (+31.9%), Spain (+40.8%) and the UK (+36.9%), but year-on-year performance for
Italy flat (-0.1%). The trend was positive in Eastern Europe, with deliveries up 41.6%, and very strong in Latin America, increasing 52.4%.
Iveco’s market share in Western Europe was 13.2% (down 0.4 percentage points vs. 2009). Share was substantially unchanged in the light segment
(-0.1 percentage points), with negative relative performance in the UK (-1.4 percentage points) offsetting increases in Spain and Germany (+1.7 and
+1.4 percentage points, respectively). Share in the medium segment was down 0.4 percentage points, despite improvements in Spain (+11.6 percentage
points), France (+1.0 percentage point) and Germany (+1.1 percentage points). Share decreased 0.9 percentage points in the heavy segment, with
negative performances in Spain (-8.1 percentage points) and Germany (-1.3 percentage points) partially compensated for by an increase in market share
for Italy (+2.1 percentage points).
FPT Industrial
For 2010, FPT Industrial (the Industrial & Marine business line of the former FPT Powertrain Technologies sector) reported €2,415 million in revenues,
representing an increase of 52.8% over the previous year driven by a strong increase in volumes. Sales to customers external to the Fiat Group as well as to
joint ventures accounted for 32.3% (32.6% in 2009). A total of 423,000 engines (+58.1%) were sold, primarily to Iveco (34%), CNH (23%) and Sevel (25%),
Fiat Group Automobiles’ JV for light commercial vehicles. In addition, 66,000 transmissions (+25.0%) and 139,000 axles (+32.1%) were also delivered.